2006 (6) TMI 413 - AT - Central Excise

Summary

Issues:
Refund claim rejection, Time-barred refund claim

Analysis:
The appeal was against the rejection of a refund claim of Rs. 68,247/- by the appellant. The Preventive staff directed the appellant to reverse an amount on the allegation of illegal Modvat credit. Show cause notices were issued, and after contesting them, the appellant filed a refund claim. The lower authorities sanctioned a part of the claim but rejected Rs. 68,247/- as it was not in dispute in any show cause notices. The first appellate authority allowed the appeal, but the Revenue appealed against it. In de novo proceedings, the lower authority and Commissioner held against the appellant, leading to this appeal.

The appellant argued that the amount was debited without authority and sought recredit, citing the Mafatlal Industries case. The Departmental Representative contended that the refund claim was time-barred based on the filing date. The Tribunal considered both submissions and found that the amount reversed by the appellant was under instructions, and the disputed amount was legitimately entitled as Modvat credit. Referring to the Mafatlal Industries case, the Tribunal emphasized the right to claim a refund when tax is collected without authority of law.

The Tribunal noted that the appellant had requested recredit in 1999, which went unanswered. Considering the facts and the Supreme Court's decision, the Tribunal set aside the impugned order, allowing the refund claim of Rs. 68,247/-. The appellant was deemed eligible for the refund, and the appeal was allowed accordingly.